1. The Reality of the Struggle to Align the Business with I.T. Rosana F. Chaidez Large Company Technology Networking Conference June 17th – 18th, 2008

2. Professional Bio  Flooring Industry Since 1987  FlorStar Sales – Director of Operations and I.T.  J.J. Haines 2002 – Present  CIO 2002 - 2005  VP of Supply Chain 2005 – Current Customer Service and Claims Administration I.T. and Telecommunications Purchasing and Inventory Control Wheeler Advisor  Bachelors of Science – Business  Master of Business Administration

3. Where Does it all Begin?  The Role of I.T. Executives and Managers Planning and Decision Making Internal Education - Technical Solutions Knowledge of the Business Awareness and Communication Customer Focused  What are the Business Priorities? How is it aligned with I.T. plans? Does it direct the I.T. priorities?  Understanding the Culture of the Corporation Where does technology rank?  Employee Dependency on technology

4. Balanced Scorecard

5. Common Business Priorities “Wholesale”  Increase Operating Revenue  Implement Strategy - Growth  Competitive Advantage Solutions  Reduce Operating Expense  Improve Employee Productivity  Improve Business Efficiencies

6.  Safety First IWMS, Warehouse Equipment, Wire Solutions  Customer Focus B2B, HOL, Call Center Solution, Network Infrastructure  Strong Profitable Growth Flexible and Scalable Telecommunications Network  Invest in our People Technical Tools, Training, and Education  Implement the Strategy Maximize synergies with Acquisitions Corporate Priorities Aligned with I.T. for JJH

7. Presenting a Business Case “What do I get back ('return') for the money I'm being asked to spend ('investment')? What is it really worth (the "ROI")?

8. Return on Investment (ROI)  Financial Benefits include impacts on the organization's budget and finances: cost reductions or revenue increases  Non Financial Benefits include impacts on operations or mission performance and results: improved customer satisfaction, better information, shorter cycle-time.

9. Business Case  Payback Period: The amount of time required for the benefits to pay back the cost of the project  Net Present Value (NPV): The value of future benefits restated in terms of today’s money  Internal Rate of Return (IRR): The benefits restated as an interest rate.

10. Total Cost of Ownership  The aim of TCO analysis is to identify, quantify, and reduce the overall costs associated with ownership of networked assets  Hard costs include items such as the purchase price of the asset, implementation fees, upgrades, maintenance contracts, support contracts, and disposal costs  Soft costs related to management, support, training, hidden costs, and downtime.

11. Strategic Alignment  Assuring that investments in IT projects and assets are directed toward achieving the organization’s strategic vision and maximizing business value  Alignment requires an IT governance structure that can quickly identify the right ideas, translate them into action, and convert the action into improved performance and results

12. Conclusion  The Reality of the Struggle to Align the Business with IT- is very REAL! It takes leadership, vision, communication, and most importantly, alignment of business goals and priorities.  What is Standing Between You and Alignment?